Nation Needs Insolvency Register, Says Head of Business Association ({{commentsTotal}})


Estonia needs to follow in Finland's footsteps and set up an insolvency register where all those unable to pay public or private debts would be listed, says Kersti Kracht, president of the Estonian Association of Small and Medium Enterprises.

She told Postimees on Tuesday that others would be unwilling to enter into contracts with those on the list, adding that insolvent people in the Czech Republic are not permitted to drive, while in Norway and Russia they are not allowed to leave the country until their debts are paid.

Kracht said that in addition to forcing deadbeat parents to pay child support, the register would bar those on the list from registering or running companies, which would help eliminate the scheme wereby businessmen rack up debts in a company's name, leaving puppet figureheads holding the bag.

Eesti Päevaleht recently reported that a total of 510 million euros is owed from civil suits related to both insolvent businesses and unpaid child support, and only 10 percent of court fines are in reality paid.

Bailiffs opened 40,000 new cases last year, closing 26,000 with 190,000 cases still open.

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